Let' say that you have a moderately bullish bias toward a stock and the overall market is slightly bullish. Is there a way that you can take advantage of this investing scenario while limiting risk?
Hedging Volatility Risk in Take-Over Stocks
Say you hear a takeover rumor. A $50 stock is rumored to be taken out at $55. Looks like a nice spec trade.
Implied Volatility and Historical Volatility
One of the most important steps in any option trade is to analyze implied volatility and historical volatility.
Volatility Events, Prediction and a Piece of Cake
Option trading is easy. Well, let me qualify that statement just a bit.
Baseball, Buying a Car and Trading Iron Condors
To be good at anything requires learning the fundamentals and constantly working on them throughout your career.
Learn to Adjust Options Positions
Adjusting option positions is an essential skill for options traders. Adjusting options positions helps traders repair strategies that have gone wrong (or are beginning to go wrong) and often turn losers into winners.
Maximizing Fade Plays
Do you feel like you've seen this movie before? Trouble in the Middle East. People in the streets; panic in the market.
Fractal Position Management
Option traders manage risk. Want a job description? That's about it.
What's the Delta of That Happening?
It was standard trader lingo on the trading floor. "What's your delta of making it to the party tonight?"
Options Gamma and You
The trifecta of option greeks are delta, theta and vega. But the next most important greek is gamma
Analyzing Options With Volume and Open Interest
Volume and open interest are two very important options data that can help traders understand what is going on in the options market.
Risk:Reward Is Not Static
Several groups of option strategies have defined maximum rewards that are approached as a result of the passage of time, changes in implied volatility (IV), and/or movement or failure of movement in price of the underlying.
